In managing home loan debt it’s always important to take an active approach. Specifically, home loan borrowers should stay abreast of interest rates and where the markets believe they are going. This is critical as it could save or cost you thousands of dollars, if you make the right or wrong decision to fix.
There are some key rules that home loan borrowers should remember. These are:
The yield curve is a line that starts with today’s cash rate and plots all market rates, (e.g. 90 day bank bill swap rate) to longer dated interest rates, e.g. 10 year Australian Government Securities (bond rate).
The Reserve Bank of Australia has been reducing interest rates; however there will come a point in the economic cycle when it will stop doing so, increasing the probability of a cash, then home loan rates rise.
In determining whether to fix your home loan, it is important to consider where in the economic cycle interest rates are, in relation to the yield curve. If it’s negative then rates could fall further, but be careful as the banks may only reduce their variable rate and not their fixed rate loans.
Home Loans and Property Prices - To buy or not to buy? Written by Michael McAlary With...Read More
Fixed rate home loans... To fix, or not to fix? Written by Michael McAlary In managing home...Read More
The home loan challenge... Written by Michael McAlary There are over 5,000 home loan products...Read More
Home Loan Interest Rates in 2014... Written by Michael McAlary We do not anticipate any major...Read More
What is an Interest Offset account and how do they work? Written by Michael McAlary Interest...Read More
Home Loans & Lifelong Investments Written by Michael McAlary Home loan innovation...Read More
Home Loan Loyalty Written by Michael McAlary Client loyalty comes from having great customer...Read More
The Convergence of Lending and Investments Written by Michael McAlary There is a lot of media...Read More
|Loans||Financial Planning||Superannuation||ESG Investments||About us|
WealthMaker Financial Services
Contact:Phone: (02) 9233 1111